 |
 |
|
|
       |
Message of the President |
|
(Delivered on the RBAP 52nd Annual National Convention held at Dusit Hotel Nikko, Makati City on May 19-20, 2005)
|
My warmest greetings to all! We have chosen the theme, “Tooling-Up for Effective Rural Banking” for our 52nd Annual National Convention in order to call on every one to continue the expansion and deepening of financial and non-financial services in the countryside. We have proven to be effective and dynamic partners of government and rural clients in their pursuit to socio-economic development. The Rural Bankers Association of the Philippines has actively participated in national and local development efforts to address poverty alleviation, employment and income generation. Now more than ever, the public and private sectors are more convinced of the rural banks’ capability to develop credit programs, improve credit sustainability and support agricultural production and livelihood activities. Rural banks indeed comprise the backbone for nationwide delivery network of financial services, fondly called as “last-mile delivery centers”. During my incumbency beginning July 2004 as President of RBAP I saw the industry grow despite economic and political challenges. Total assets increased by 12.36% from P89.8 Billion to P100.9 Billion by the end of December 2004. Non-performing assets inched up by 11.43% or from P14 Billion in 2003 to P15.6 Billion in 2004. However, the ratio between non-performing assets to total assets declined from 15.15% in 2003 to 14.93% in 2004. Capital improved by 12% or from P14.3 Billion in 2003 to P16.02 Billion in 2004. Non-performing assets to capital ratio exhibited a slight improvement from 82.67% in 2003 to 81.90% in 2004. Deposits went up by 13% or from P62 Billion in 2003 to P70 Billion in 2004. Rural banks loaned out P56 Billion in 2003 rising by 14.30% by the end of 2004 or a total of P64 Billion. Total earnings advanced by 15% from P1.47 Billion in 2003 and P1.69 Billion in 2004. Being small and in far flung areas are not obstacles to excellence in governance and profitability. Rather, these are the core strengths and opportunities of RBs as they become dependable and sustainable springs of credit for small farmers, traders, fisherfolks and enterprising. Tracing the Trails of the Past This year, we concentrated in achieving the Six-Point Program of Governance and I am happy to note that our gains surpassed our expectations for the rural banking sector. I. On Membership, Business and Technical Services As a result of our campaign, we accepted 24 new rural bank members this year bringing our membership to 736 rural banks net of mergers, consolidation and closed banks. Rural banks now realize the importance of the Association’s services. RBAP offers manpower assistance to process accreditation documents and related transactions with SSS, PhilHealth, BSP, AMLC, SEC, DepED, PDIC, government agencies and commercial banks. With a working communication infrastructure, the RBAP Website, access to relevant information, training and consultancy offerings, useful business alliances, credit facilities and other information became easier. With our email facility, communication has been made simpler and practicable making possible cross-selling of services, transactions and financial products at competitive rates. II. Management and Operational Capability RBAP intensified the build-up of management and operational capabilities of its members to be competitive, compliant to regulations and strong players in the formal rural finance sector. Along this objective, we developed and offered 16 training modules. All together, we implemented 62 RBAP seminars and 27 MABS trainings. Recently we signed an Agreement with Ateneo Graduate School of Business to further expand our training courses through the academe. RBAP training courses shall be credited as Graduate units in Ateneo and we will be permitted to access their vast academic researches, teaching faculty and fellows, and training facilities at affiliate satellite offices all over the country. RBAP focuses on technology transfers granted by bilateral and multinational agencies. We are closely working with MABS in partnership with USAID and MEDCO to champion microfinance and attain a loan portfolio of 528 Million pesos in 2005 with a total of 192,400 micro enterprise borrowers. MABS created 260,199 new micro depositors. MABS best practices promote strategic marketing, delinquency management and internal control which equip RBs to empower the enterprising poor for a commercially viable credit program. In addition, the Association works very closely with Japan Bank for International Cooperation and Asian Development Bank for possible programs on MSME credit development strengthening initiatives. RBAP in cooperation with the Small and Medium Enterprise Development for Sustainable Employment of GTZ is currently implementing SME Credit training in the Visayas. The program aims to equip the rural banking sector with the needed management tools and skills to effectively administer small and medium finance loans. The Land Bank of the Philippines and Development Bank of the Philippines continue to support rural banks in increasing credit productivity for farmers and fisherfolks through their wholesale window. RBAP brings rural banks to the forefront of cutting edge technology of telecommunications to attain competitiveness in the market. RBAP Text-a-Payment using Globe G-Cash has been successfully piloted to be launched today. It aims to facilitate loan payments to improve credit portfolio quality by utilizing short messaging services commonly known as “text messaging” in microfinance amortization. Other Telecom and VOIP providers are also holding talks with us for similar sharing of technology to open new delivery channel for remittances from parties abroad desiring to remit money to beneficiaries in the Philippines and for other banking services. We are also working with leading Commercial Banks and RBs to provide nationwide ATM co-branding and international remittance services. The rural banking network will continue to grow as a robust business channel for money transfer and payment transactions using nationwide ATM system effectively reducing entry costs, operation expenses and investment outlays. RBAP alliances with insurance industry continue to boost RBs ability to help workers, micro entrepreneurs, small traders and OFW families improve protection against vulnerabilities. I am also delighted to inform you that soon, RBs will act as the financial backbone for cellular phoneunit acquisition by farmers, fisherfolks and micro enterprise borrowers. This opportunity will further bring more meaning to rural banks’ empowerment of countryside stakeholders. Information is key to development Farmers will have direct access to daily weather forecasts and prices of agricultural inputs thereby enhancing their farm productivity and income. This year we have initiated exchange study groups abroad to gain a broader knowledge on rural finance technology and best practices from a global perspective. We also have started the creation of an Investment Desk to distribute information on investment opportunities and treasury management to rural banks with excess liquidity and investible funds. Under a signed agreement, we have agreed to promote Quedancor’s multi-million investment program as part of the Investment Desk. I see the beginnings of a national liquidity pool to help rural finance institutions to attain resiliency and stability against systemic threats. III. Industry Compliance The third point of governance for RBAP is to strengthen the sector’s compliance system. We intensified compliance trainings and advocated for the organization of compliance officers associations at the federation levels. Our goal is to actively participate in all regulatory policy decision-making and gain fair and equitable share from these policy directions. We also worked closely with Bangko Sentral ng Pilipinas and Anti-Money Laundering Council to conclude national roadshows on electronic reporting and improve the compliance with regulatory and reportorial requirements to these agencies. There is work to be done in the loan loss provisioning to cushion rural banks from unexpected credit defaults. IV. Strengthening Federations To build a strong RBAP, the 39 Federations and 6 Confederations must be enhanced and sustained. To do so, we encouraged co-hosting of trainings and other symposia with the Federations. We already held a total of 36 co-hosted trainings and 19 MABS trainings. We also provided secretariat services to five Credit Management Conferences and at the same time carried out dialogues with the Federation and Confederation Presidents to iron-out local issues and discuss possible initiatives. Another means to strengthen the Federation is through our Credit Bureau initiative which uses the Federations to farm-out RB participation and collect negative file reports thus, improving the quality of loan portfolio and reduce credit pollution. Technical assistance such as MABS and SMEDSEP are implemented through the Federations, thus, benefiting not just the individual banks but the network as a whole. V. Promotion of Unity Among All Federations and Regions It is our belief that through unity among and between federations, the industry can become a sound and strong network of community banks acting as commercial hubs for the diversification of rural economies. Thus, this is the fifth item of our program of governance. All rural banks are competitors and brothers with common aspirations - to uplift their business and serve the countryside. VI. Sustainability of Programs To create a long-term impact of these initiatives, we need to create a framework to sustain them. We aspire to transform into rural banks bustling community business centers and prime movers of MSME development. We call on all to adopt the principles of good corporate governance into their day-to-day operations. To perform this task, the Association must be more responsive and professional. We hired professional managers and Account Officers to administer our daily operations, promote advocacy and advance our mission. The Future of RBAP During the RBAP Strategic Development Workshop last January 21 to 22, we resolved to make the Association function as a full service organization, and act as strong advocacy center for community banking in Asia evolving into an information and communication center by 2010. We will continue to expand our programs and services to position our membership into the frontline as core players of growth in the trenches bringing more banking services to the bottom of the pyramid and farmlands. The industry will continue to serve the poor – to unleash their entrepreneurial potential and become productive members of the community. By acting as a unified network, the 1,900 banking offices, strategically located all over the country will deliver significant changes and improvements in the countryside. Banking business is a whole ecosystem in itself. There are a lot of players whose functions are intertwined to meet the demands of the environment. In this ecosystem, change is constantly happening - we develop new products, we discover new opportunities and we cut-off outdated practices. Thus, RBAP will constantly set goals, work-out to achieve these goals and unearth opportunities for the sector’s advancement and attainment of countryside progress. For the next two days, we will listen to our speakers and exchange best practices so that as we go back to our banks, we will have something to share and apply. As we listen to them, we shall always be reminded that, “Sa Rural Banks, mga pamayanan ay uunlad, ang ating bansa ay uusad!” Salamat po! |
 |
Circular Letters/Memoranda |
|
Speeches/ Presentations |
|
Photo Gallery |
|
The 2008 RBAP Charter Symposium |
|
2008 CFI Awards |
|
Rural Banking Week Celebration Golf Tournament |
|
Client Satisfaction Survey for Licensing Management System of the Supervision and Examination Sector |
|
Financial Reporting Package 2008 |
|
BSP releases regulations on liquidity, market risk weighting |
